Explain causes, effects, and policy measures to curb or to solve unemployment

CAUSES OF UNEMPLOYMENT:
a). Rapid population growth- this means that the population is growing at a faster rate than the rate at
which the economy is expanding.
b). Seasonality in population- seasonal variations create unemployment in the economy such that during
the peak seasons employment is low.

EFFECTS OF UNEMPLOYMENT:
a). Increase in crime rate- People who are unemployed and cannot meet their needs may resort to
stealing to acquire even the basic necessities.
b). High dependency level- people who are unemployed tend to depend on those that are employed for
their upkeep. This may strain those that are employed.
c). Low standards of living- reduced incomes reduce individual abilities to acquire basic needs such
as foods and health-care. this leads to reduced standards of living of such people.

POLICY MEASURES TO CURB UNEMPLOYMENT:
a). Population control- this may be done by advising people to adopt family planning methods so as to
reduce the number of people entering the labor market.
b). Encouraging employment creation in the private sector- the private sector has the potential of
increasing ob opportunities. This may be encouraged by activities such as reduction of taxes and
provision of subsidies by the government.
c). Adoption of a relevant education system- this system should emphasize the skills required in the
labor market.
d). Rural development- this provides job opportunities in rural areas as well as giving incentives to
investors to locate industries in the rural areas providing employment.

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Hildah Wafula answered the question on February 28, 2019 at 06:03